scholarly journals Liquidity risk management: practice among Croatian firms

2018 ◽  
Vol 6 (1) ◽  
pp. 81-97
Author(s):  
Goran Karanović ◽  
Bisera Karanović ◽  
Martina Gnjidić
Keyword(s):  
Risk Management ◽  
Risk Measures ◽  
Management Practice ◽  
Liquidity Risk ◽  
Financial Knowledge ◽  
Financial Indicators ◽  
Liquidity Management ◽  
Management Measures ◽  
Management Plans ◽  
Business Entities

The main purpose of this paper is to explore the practice of liquidity risk management of Croatian business entities. The analysis is based on a survey of 62 business entities in Croatia. The authors investigate the existence of risk management and liquidity risk management measures among the surveyed business entities. The respondents’ knowledge of management, their use of indicators and methods for the management of liquidity risk, in addition to the cited reasons for implementation of liquidity risk measures were also subject to examination. Furthermore, the authors investigate the importance of liquidity management in business. The analysis reveals that Croatian business entities have neither sufficient knowledge regarding the majority of financial indicators, nor they tend to use liquidity management plans. Consequently, the survey’s findings indicate that the overall level of financial knowledge of Croatian managers is inadequate. This can, thus, be identified as one of the reasons for the traditionally high number of illiquid business entities in the market. Finally, this paper provides academia and policymakers with new revelations concerning the management of liquidity risk among business entities in Croatia.

scholarly journals A SUCCINCT ANALYSIS OF MITIGATING LIQUIDITY RISK IN ISLAMIC BANKS IN THE LIGHT OF LIQUIDITY AND RISK MANAGEMENT PRINCIPLES

2019 ◽  
Vol 4 (1) ◽  
pp. 527
Author(s):  
Atharyanshah Puneri ◽  
Naeem Suleman Dhiraj ◽  
Hafiz Benraheem
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Financial Institution ◽  
Real Life ◽  
Liquidity Risk ◽  
Islamic Banks ◽  
Liquidity Management ◽  
Islamic Financial Institutions ◽  
The Subject ◽  
Key Aspects

Liquidity management has been incessantly challenging for the financialinstitutions and especially Islamic financial institutions due to their nature of business. The�convoluted nature of liquidity management impedes the task of Islamic banks in managing�their liquidity efficiently. Given the intricacies of the subject matter, this paper delves into�elaborating the key aspects of liquidity management; subsequently, discusses the�consequences of poor liquidity management and problems inherent in managing the latter by�analyzing the real-life failure of Islamic financial institution as a result identifying the issues that could possibly jeopardize the existence of the Islamic banks. Finally, equipping the�readers with tools to mitigate the liquidity risk.

THE USE OF LIQUIDING AS A BANK MANAGEMENT CATEGORY

2021 ◽  
pp. 61-64
Author(s):  
Y. V. Rozhkov
Keyword(s):  
Risk Management ◽  
Liquidity Risk ◽  
Liquidity Management ◽  
Bank Management ◽  
Credit Institutions

The article describes the theoretical problems related to the use of «bank liquidity» category. «Function» category is revealed in relation to the liquidity of credit institutions. It is proposed to introduce «liquiding» category into scientific and practical circulation as a quintessence that combines the concepts of «liquidity», «liquidity management», «liquidity risk management»

scholarly journals Theoretical aspects of liquidity management in a commercial bank

2020 ◽  
pp. 61-69
Author(s):  
S. V. Solonina
Keyword(s):  
Risk Management ◽  
Organizational Structure ◽  
Commercial Bank ◽  
Management System ◽  
Liquidity Risk ◽  
General System ◽  
Point Of View ◽  
Credit Institution ◽  
Management Tools ◽  
Liquidity Management

The study presents various approaches to the interpretation of the concept of liquidity of a credit institution and its essence. Differences are highlighted that reflect the priority aspects in assessing the liquidity of a commercial Bank from the authors ‘ point of view. The Bank of Russia’s liquidity ratios and ratios are also presented. The research resulted in a change in the Bank’s structure, since the most important element of the formation of a commercial Bank’s liquidity management system is the improvement of the organizational structure responsible for forecasting liquidity and selecting management tools. When improving such a structure, it should be ensured that the structure is integrated into the unified management system of a commercial Bank, that it is linked to other structural divisions of the Bank, and that it has a comprehensive approach to managing liquidity risk, along with other risks. It is concluded that the most effective model is the creation of a single risk management Department, which includes a liquidity management Committee. At the same time, all structural divisions of the Bank should be included in the General system. The recommendation to evaluate the obligations taking into account the possibility of their early repayment is justified.There is no conflict of interests.

scholarly journals THE DEVELOPMENT OF THE RISK MANAGEMENT MECHANISM FOR INNOVATION PROJECT

2018 ◽  
Vol 3 ◽  
pp. 12-20
Author(s):  
Anatoliy Shakhov ◽  
Varvara Piterska
Keyword(s):  
Risk Management ◽  
High Probability ◽  
Net Present Value ◽  
Risk Measures ◽  
Innovative Activity ◽  
Financial Risks ◽  
Present Value ◽  
Management Mechanism ◽  
Management Measures ◽  
Innovation Project

It is established that the high probability of emergence of risk situations in the innovation project, requires the implementation of risk management measures. It is noted that there is currently no mechanism for distributing of financial risks between the customer and the executor of the innovation project, that is largely negatively reflected in the desire to invest own funds in innovation. The methodological bases of risk management of innovative activity of the project-oriented organization are offered in the article. With the proposed approach, it is possible to estimate in advance how much the proposed risk management measures can reduce the risk of an innovation project and how this activity will affect on the project's effectiveness in deciding whether to continue or stop the innovation project research. On the basis of the existing characteristics of the risk measures of the innovation project, it can be concluded that the best indicator of the effectiveness of a certain stage of the innovation project by the results of simulation is net present value of the project. It is better to use the probability of receiving an ineffective result of an innovation project at an appropriate stage for assessing of the risk of the innovation project and the decision to continue or stop the innovation project at a certain stage.

Part V Liquidity and Leverage, 21 Liquidity Requirements

2018 ◽  
Author(s):  
Gleeson Simon
Keyword(s):  
Risk Management ◽  
Liquidity Risk ◽  
Basel Iii ◽  
Liquidity Management ◽  
Coverage Ratio ◽  
Risk Monitoring ◽  
Monitoring Tools ◽  
Basel 3 ◽  
Liquidity Regulation

This chapter discusses liquidity requirements under Basel 3. The basis of all liquidity regulation remains the BCBS principles for sound liquidity management, which provide detailed guidance on the risk management of liquidity and are intended to promote better risk management in this area. These are supplemented by the liquidity monitoring tools set out in the BCBS paper Basel III: The Liquidity Coverage Ratio and liquidity risk monitoring tools. There is also a move away from modelling and towards a less flexible, less risk-based architecture which prioritises comparability and even-handedness over accuracy and effectiveness. Moreover, supervisors are mandated to operate a comprehensive programme of liquidity supervision over and above the mechanical requirements.

FIXING RISK NEUTRAL RISK MEASURES

2016 ◽  
Vol 19 (03) ◽  
pp. 1650021 ◽  
Author(s):  
HARVEY J. STEIN
Keyword(s):  
Risk Management ◽  
Real World ◽  
Risk Measures ◽  
Management Practice ◽  
Regulatory Capital ◽  
Change Of Measure ◽  
The Real ◽  
Alternative Approach ◽  
Risk Neutral ◽  
Credit Valuation Adjustment

In line with regulations and common risk management practice, the credit risk of a portfolio is managed via its potential future exposures (PFEs), expected exposures (EEs), and related measures, the expected positive exposure (EPE), effective expected exposure (EEE), and the effective expected positive exposure (EEPE). Notably, firms use these exposures to set economic and regulatory capital levels. Their values have a big impact on the capital that firms need to hold to manage their risks. Due to the growth of credit valuation adjustment (CVA) computations, and the similarity of CVA computations to exposure computations, firms find it expedient to compute these exposures under the risk neutral measure. Here, we show that exposures computed under the risk neutral measure are essentially arbitrary. They depend on the choice of numéraire, and can be manipulated by choosing a different numéraire. The numéraire can even be chosen in such a way as to pass backtests. Even when restricting attention to commonly used numéraires, exposures can vary by a factor of two or more. As such, it is critical that these calculations be carried out under the real world measure, not the risk neutral measure. To help rectify the situation, we show how to exploit measure changes to efficiently compute real world exposures in a risk neutral framework, even when there is no change of measure from the risk neutral measure to the real world measure. We also develop a canonical risk neutral measure that can be used as an alternative approach to risk calculations.

scholarly journals Policing registered sex offenders

2017 ◽  
Vol 19 (4) ◽  
pp. 296-300 ◽  
Author(s):  
Stephanie Kewley
Keyword(s):  
Risk Management ◽  
Sex Offenders ◽  
Management Practice ◽  
Sexual Offending ◽  
Sexual Offences ◽  
Content Type ◽  
Management Plans ◽  
And Performance ◽  
Supervision And Training ◽  
Practical Implications

Purpose The purpose of this paper is to outline current police risk assessment and management practice when working with those convicted of sexual offences. The paper introduces the newly implemented Active Risk Management System (ARMS), a risk- and strengths-based tool used by the police across England and Wales. Design/methodology/approach A brief review of the literature and current practice is discussed. Findings The paper notes that in order for practitioners to work in a context of rehabilitation and reintegration, particularly one that supports clients convicted of sexual offending, there is a real need for practitioners to have the skills and experiences to work with this group. They also need to hold core values that support the notion of change and they ought to be fully supported through formal supervision and training. Practical implications Following are the practical implications of this paper: ∙training ought to be regular and ongoing; formal supervision sessions should be made available for all ARMS assessors; assessors ought to be assessed and observed in practice; and performance measures must be related to the quality and effectiveness of the design and implementation of risk management plans rather than the quantity of plans or home visits. Originality/value Very little has been written about this unique group of police practitioners who work to assess and manage people with sexual convictions. Even less is known of the effectiveness and applicability of the ARMS tool. Thus, this review is of value to academic and practitioner audiences.

scholarly journals Analysis of an Optimal Model for Liquidity Management of Financial Assets Using an Intelligent Scheduling Approach

2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Yi Zhou ◽  
Weili Xia ◽  
Shengping Peng
Keyword(s):  
Risk Management ◽  
Liquidity Risk ◽  
Research Priorities ◽  
Management Research ◽  
Liquidity Management ◽  
Management Capability ◽  
Operation Process ◽  
Depth Study ◽  
Scheduling Method ◽  
Intelligent Scheduling

This paper adopts the intelligent scheduling method to conduct an in-depth study and analysis on the optimization of financial asset liquidity management model, elaborates and analyzes the liquidity risk management theory of commercial banks, and reviews the progress of liquidity risk management research in domestic and foreign academia as the theoretical basis of this paper. After that, we analyze the liquidity risk management of Anhui Tianchang Rural Commercial Bank from both qualitative and quantitative levels and further review and analyze the problems and causes. Finally, the full research is summarized and reviewed, theoretical and practical insights are discussed and analyzed, and future liquidity risk management research priorities and directions are elaborated. Based on the analysis results, the problems of the bank in liquidity risk management are described one by one, and further deep-seated cause discovery is carried out to summarize the problems of liquidity risk management which exist in the bank’s operation process due to the lack of liquidity risk management, unbalanced asset, and liability allocation, as well as weak emergency management capability, insufficient day-to-day liquidity monitoring, and lack of professional talents. For the problems and causes of the study, effective suggestions on how to strengthen the bank’s liquidity risk management in multiple aspects are proposed. It is hoped that, by improving the bank’s liquidity risk management and reducing the chance of liquidity risk occurrence, the bank’s sustainable development can be enhanced, and it is also hoped that it can provide some reference for the liquidity risk management of similar rural small- and medium-sized financial institutions.

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